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Department of the Interior Activity Based Cost/Management (ABC/M) Status of DOI ABC/M Work Activities

Department of the Interior Activity Based Cost/Management (ABC/M) Status of DOI ABC/M Work Activities. DOI ABC/M Activity Oversight Team 1 Sep 04. Status as of 1 October 2003. 330+ Activities Defined at too high a level – activity definitions and outputs are

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Department of the Interior Activity Based Cost/Management (ABC/M) Status of DOI ABC/M Work Activities

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  1. Department of the Interior Activity Based Cost/Management (ABC/M) Status of DOI ABC/M Work Activities DOI ABC/M Activity Oversight Team 1 Sep 04

  2. Status as of 1 October 2003 • 330+ Activities • Defined at too high a level – activity definitions and outputs are not meaningful at bureau operational levels • Inconsistent level of granularity – some are summary level activities, some are too detailed • Inconsistent level of detail in activity definitions – some are very detailed, some are sketchy • Outputs are ill defined or are not true outputs resulting from the work activity

  3. Treatment • Standardize process/structure for ensuring that the DOI Work Activities accurately represent the Department’s work, and for ensuring that there is consistency in establishing activity and output definitions • Develop hierarchy of linking Bureaus/OS work activities to DOI Work Activities formed around the work done. Once activities are identified, link to end outcome goals and strategies in the Strategic Plan – one activity links to one strategy/end outcome goal (DOI-approved exceptions) • Form an interagency Activity Oversight Team (AOT) as a formally recognized body to whom Bureaus and OS Offices can take proposals for changes to DOI Work Activities and to whom the Dept can turn to resolve issues concerning DOI Work Activities

  4. Activity Refinement Progress • Review existing work activities for redundancies across Strategic Plan - done • Reconcile outputs from activities generating multiple outputs based on identifying primary output resulting from work activity. If AOT believed a secondary output is also important to cost, identify/define work activity generating that secondary output. - done • Break out activities to finer level of granularity to have greater visibility to the work done and to have meaningful outputs – improved refinement, but more work needed at bureau activity level • Realign new/revised work activities to the Strategic Plan against end and intermediate outcomes – done, but have some strategies with no work • Target: produce revised set of DOI Work Activities for FY05 by Aug 15 – done. Bureaus working to realign bureau work activities to FY05 DOI work activities.

  5. Analysis Tool – Focus on Work Done (Show and Discuss matrices) Matrix view developed for Resource Protection, Resource Use, Recreation, and Serving Communities – Protect Lives, Resources & Property: - Standardize major components of work across Strategic Plan - Identify redundancies across end outcome goals and mission areas - Identify missing activities - Focus on resource & causes of risk - Only applied to areas requiring most work

  6. Processing Steps • Reconcile outputs from activities generating multiple outputs, e.g. one treatment activity generating “acres treated” or “miles of road treated” - Split activity into multiple activities to resolve output issues • Used to reach agreement on what primary output should be • Used to refine Resource Protection treatment activities • Breaking out activities to finer level of granularity for greater visibility to work done and to have meaningful outputs • Applied to work components with large costs (I.e. material) • Primarily in Resource Use • Realign new/revised work activities to Strategic Plan against end outcomes and strategies - One activity to one end outcome rule broken for maintenance, construction, and land acquisition - 4 “stranded” strategies – not critical

  7. Issues • Allocation to goals – bureau-specific models for associating maintenance, construction and land acquisition costs to end outcomes • Granularity – working bureau consensus on appropriate level of detail; materiality issues • Reconcile outputs to work activities – “apples to apples” groupings/comparisons for meaningful unit costing

  8. Summary • 74 new activities • 28 deleted activities • about 316 activities total for FY05 For FY05 Work to standardize bureau work activities shared by more than one bureau – focus on outputs

  9. DOI Activity Oversight Team Sponsor: Nina Hatfield BIANPS Marlene Walker Mike Brown BLMOSM Betty Buxton Kathryn O’Toole Art Abbs BOR Bill Kovasik Debra Burrell Ralph Sokolowsky USGS Kerry Whitford Charlene Raphael Kathy Marshall Barbara Newman FWSOS Denise Sheehan (leader) Dot Sugiyama Kathy Tynan Regina Gilbert (OST) MMS Marty Heinze

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